chapter  III
14 Pages

The Distinction between Efficiency and Distribution

We have spoken in Chapter I as if it were easy to distinguish between the efficiency aspects and the distributional aspects of any economic change caused by a given act of governmental policy. It seems only natural common sense to make some distinction. It seems natural to comment, for example, on certain policies that they may make the economy more efficient but that they be1).r hardly and unfairly on a particular group in society. Yet on looking more carefully into the question, the definition of the distinction between the efficiency and the distributional aspects of a given change raises great difficulties.